Efficient markets are considered rationing devices because
A)consumers how value the good or service the most will be the one who get it.
B)suppliers can produce the good or service at the lowest cost ensuring a lower price.
C)the equality of the market allows for all to benefit.
D)of government decree.

Question

Quizplus · Accepted Answer

In an efficient market, prices will adjust to reflect the valuations of buyers and sellers. This means that the good or service will be rationed to those who value it the most, as they will be willing to pay a higher price for it. Therefore, efficient markets act as a rationing device by allocating resources to those who value them the most.

Efficient Markets Are Considered Rationing Devices Because